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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market.












Toyota 12, Us 9, U.s. 9, Aflac 6, S&p 6, Devry 5, Phil Lebeau 5, Dr. Dre 4, Ken Fineberg 3, Devry University 3, John 2, Alcoa 2, Brazil 2, India 2, Washington 2, China 2, Peter 2, Darren 2, Joe 2, Vince 2,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of  
   the day's winners and losers in the stock market.  

    April 5, 2010
    4:00 - 5:00pm EDT  

alcoa was downgraded today, and that could cut into profit margins there. and earnings season kicks off next week in alcoa. and also, a decent-sized deal with 1.5 billion, and that is what arena resources is being acquired by sandridge energy today. so we had a merge to talk about on this monday. spending home sales, the nonmanufacturing report, and pending home sales were both positive and the home builders getting a bump off of the pending home sales numbers as yo look at standard pa sifshgs and beezer and pullty, and hovnanian and you specifically see it from a regional bank standpoint even though citi was up quite nicely today and you saw some of to smaller regional banks as the outperformers from the financial space today, and this is news breaking in the past show
"closing bell," with phil lebeau saying that toyota is fined by the federal government of $16.4 billion for not notifying them, and that is the largest fine ever. so we are seeing a dip, but there are recovery in shares of toyota, but nonetheless, that is a significant story, and again, wrapping up the headline, the dow jones industrial average inching so closely to dow 11,000, a place it has not been since september of 2008. however, it with elusive on this day, maria. >> thank you, scott. a big day for energy. oil prices surging past $86 a barrel, and heavy volume as well, and here is sharon epperson at the nymex with that story and this is another one that won't quit, sharon. >> right. since october of 2008 have we seen prices at these levels. when you look at oil prices over the last week and month, you will see how we broke out of the recent range and decidedly so and where are the oil prices headed? well, almost every analyst says
little technical resistance to where we are to $90 a barrel. you add to that the fact of positive economic data on jobs and pending home sales today and service sector and manufacturing last week and the money flows we have seen in the past month into the commodities sector and into oil in particular and also the fact that some of the money managers are increasing the long positions and looks like oil prices are headed toward that level. what does that mean for consumers? well, when you look at what we have seen in the rally today, interesting that when we look at what it was load not by gasoline in the futures, but heating oil leaving some to wonder if it is a diesel-led rally with the industrials causing prices to rally to this point. we are seeing the impact at the pump and the prices at the pump are up 40% from where we were at this time last year and they are at the highest levels since october of 2008. the average price that we are seeing on the national basis is
$2.83 a gallon and looking close to $3 and hard to get that out, but that is where the gasoline prices are headed. natural gas is standing by and we saw a surge in the natural gas prices after data came out that we will see a change in the perhaps way that production data is reported from the energy department on a monthly basis, and when you look at the metals complex, it is hard to believe that gold is the laggard, but palladium is the standout used in catalytic converts and in cars and that is something that traders are using as well, the demand we are seeing there. back to you. >> thank you, sharon. the transportation department slapped toyota with a record fine related to the massive vehicle recall. phil lebeau is in chicago with that. >> this fine is for $16.4 million. it is a record against any one automaker and it has to do with toyota failing to notify the federal government in a timely fashion, and timely being within five days of knowing that it had
a problem with sticking accelerator pedals. they were first notified of a possible problem and acknowledged the problem on september 29th, but again, they did not issue a recall for the sticking accelerators until january. the transportation secretary ray lahood says that we have proof that toyota failed to live up to the legal obligations and worse yet, they hid a dangerous defect from the u.s. officials and did not take action to protect millions of drivers and their families and that is the reason that the d.o.t. is fining toyota a record $16.4 million and we are waiting for a statement from toyota, and in a practical sents, you saw the shares coming back, and $16.4 million is a drop in the bucket to a company like this. and it all revolves around notifying the u.s. government. it is not in respect to the defect, but saying it did not notify the federal government as quickly as it should have, and that is why you have fine of
$16.4 million. >> we will see you late ore than important story, phil lebeau. other stories recovering tonight. the consumer index has a new raiding of 55.4 for the month which is better than wall street's expectations and marks the second straight month that the services sector has grown. the services sector accounts for 80% of the nation's jobs. the national association of realtors reports pending home sales unexpectedly jumped 8.2% in january. and they were looking for it to decline in the harsh weather in the northeast, but there is renewed hope that they could see a spring sales surge. and microsoft will unveil a mobile phone on the microsoft network. it will revive the mobilephone sector and marketed to younger consumers.
and will it continue? joining us is david who is the market analyst and manager of loonis, and also, mark from werner sales. >> well, i am looking for a year above average and s&p 500 target ending the year somewhere between 1250 and 1275 that says that we have probably another 8% or better on top of the 6% gains already. i worry more about 2011 and a tax bill that is due. but in 2010, respectable valuations, and robust free growth, and incentive that is not in the too bullish territory to get me nervous which adds up to better than expected returns. >> david, do you agree with that? >> i do, but i tend to be more
aggressive. i think that we will reach the 1300 level on the s&p 500. and if you look at the earnings and end up at $80 on the earnings of the companies on the s&p 500k and you put a multiple of 15 on that, and that is a reasonable multiple for expansion and economic recovery, you goat the 1200 level, and if you look into 2011 earnings and reach the mid-1990 levels and then in the 2010 we could start talk about the 1,400 level on the s&p 500. >> and what should you do to take advantage of that? >> well, the consumer stocks continue to lead the market, so you will have the employment picture improving dramatically. we are likely to see a multiyear improvement in the employment situation in the u.s., so consumer stocks is a great place to continue to be invested in. the financials regional banks and once the volume of lending begins to accelerate to the upside as the banks are more comfortable lending, you will see the tremendous profits and
earnings growth in the regional banks and then technology stocks may continue to do well here and they are cyclical stocks when the consumers spend and buy more electronics and the semi-conductor stocks continue to grow as well. >> do you agree, david, that you want to look at those sectors to be capitalizing on what is a good market in 2010? >> well, on the consumer side, yes, technology side, more robust yes. on the regional banks, i am more hesitant on the consumer side. look for rotation and a name like lowes on the home improvement side is their turn to shine. and fossil which is the retail watch store, i think that is a great play on a small cap side. leer emerging from bankruptcy is another supplier and technologies like corning which had a slow start earlier in the year is gaining momentum on better flat panel screen demand and less on the banks and more leaning to the industrials with last name, and smaller
industrial play called goi, which has put up the highest and the lowest resolution satellites, and there are ideas on the industrial, and tech an consumer side. >> what should you avoid? what about banks here, david saurby? what do you think about the financials? we have financial regulatory coming down the pike, and consolidation happening in the industry, and a lot of people think it will continue, but yet, money is moveling into the banks? >> it is, but i would rather be on the asset management side which is benefiting from the stock market, and i think that it is a better place than the regional banks and still underweighted financials relative to other sectors be overweighted in. >> thank you. leave it there. thank you both. just ahead, the real deal on executive compensation and who is paid what? we will tell you why 2009 was not a banner year when it comes to ceo packages. are the packages really slinking in the executive suite? >> are we poised to see a big surge in stock buybacks and
dividends? we will break down the angle and find out exactly where the areas are that are poised for buybacks and dividend increases. later on tiger woods is facing the music and holding his first no holds barred press conference. find out what he is saying next up. aflac is not more benefits at greater cost to your company insurance. aflac is not how do i fit it in my company's budget insurance. aflac is help protect and care for your employees at no cost to your company insurance.
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welcome back. executive pay at the nation's largest firms falling sharply for a second year in a row. cnbc's mary thompson on the details. >> well, for the second year in a row, they declined with the survey done by "the new york times" which surveyed the 99 largest companies in the u.s. on average ceo pay at these firms fell 15%, and to $9 million median pay to $7.7 million. behind the decline, the stock option granted in the years before. the data does not tell the whole story. value those values at today, they look more richer given the
market's rebound. a big option grant pushed larry oracle to the top of the list with a $84 million payday, and raymond elliott's $33 million in pay is in options, too, but most is under water meaning that the package is smaller. for some, 2009 was the year of the pay czar, and ken fineberg overseeing pay in corporations with billions in aid. he says that the claw backs and the performance paybacks have a modest payback outside of the seven firms. >> i certainly think that there is discussion at most boards about what is going on with t.a.r.p. companies. i don't think that the influence that he's had is as wide ranging as i think that he might like to see. >> well, for ceos whose firms did repay t.a.r.p., some hefty
paychecks, and $18.8 million earned by john stumpf, and ken chenault earned over $16.6 million, and as for the target of many complaining about the pay, no wall street firms had ceos among the top 20 highest paid executives and on the banks only wells fargo was in that range. >> and how companies are changing the view of how they may the executives we are joined by the chair of the compensation division, and also an attorney at little and robinson. nice to have you gentlemen on the program. james, you have the believe that some of this is a result of what ken fineberg is doing, and the embarrassment of some of the numbers that most people can't get their arms around, right? >> i think that is right. firms are very sensitive to the
appearance of what compensation is being paid particularly to the people at the top. overall, at the senior management levels, i don't see the compensation dropping as dramatically as some of the numbers may suggest. i think that the real ramification of ken fineberg's program is that the firms feel they must pay huge xhunk chunks compensation or equity. >> john, are you afraid that the leading ceos is causing government intervention into public companies and what they pay the executives? >> i am afraid of the tone that i am hearing, the tone of the article. we are moving from excessive risk taking to exses i.v. cessi pensition that is something a year ago was unheard of. now, are ceos flat out making too much money. that is not the question. it is are they making too much money for the value they are bringing or making too much money in the way that is causing
them to incur excessive risk that is damaging to us as taxpayers or the shareholders? that is really what should be the debate here. >> but when you talk to people who really don't understand those numbers and can't really understand how you ever got to those numbers, maybe the question s are they making too much money? >> well, i think that is right. >> it is a fair question. i agree with john, it is a wrong question. these individuals are unique and they can do the job. if a firm wants somebody to analogize it to baseball who can hit 40 home runs every year for last three years, few people can do it, and that i have to pay them a lot of money to do it, and compensation has to remain at a certain level to be competitive, but they have to be responsive to the populist outrage and they are trying to quell the furor, but they are hamstring, because they have to pay the money if they want talent. >> but is this sustainable? how much of the reigning in or how much of the change of compensation is long lasting or
maybe it is in hope of avoiding ken feinberg or somebody like him to tell them how much they can pay? >> yes, that is true. i deal with compensation committees and members of boards of directors, and they aredoing need to the retain the top people out there. that is a huge concern and number one concern, and should be, but there is a back burner that they are concerned about which is making sure that they remain unregulated. they are actively concerned about that today. >> do you believe that this is long-lasting? do you think that we have turned a corner where we will slip back into this -- you are nodding your head, james. >> well, i don't think so. if you think back to the paid controls in the 1970s to curb salaries which were fix fod ar amount of time, and there was a human cry that it would change the people would be compensated
and that is true here. people want good workers and people who succeed want to be paid well for what they do, and john's point is well taken. the real focus must be on how compensation is calculated and transparency, can the shareholders and the public see how people are being paid and what they are doing to earn the compensation. if they are getting the job done, they should be paid for it. >> i completely agree and should be tied to performance, but john, how do compensation committees have changed? have they changed their views on the role and the security as it relates to the decisions they make? >> well, they have. that change has been a long time coming, and it has been gradual over the last, you know, eight to ten years and really since enron. we have seen a bigger focus on pushing back on the old crony system that used to be in play. you don't see that at all anymore. you will see a compensation committee members today who are very concerned with their, with the way they are perceived among shareholders on multiple companies, and, you know, in
their professional context and professional career. there are secondarily concerned about liability, but not as much. they are taking their jobs much more seriously because of the climate out, there and that will remain for quite some time and it should remain, but i agree that this is probably a temporary, you know, time period when we are this focused and this concerned about government regulation of the public companies generally. >> okay. we leaf it there. gentlem gentlemen, great conversation. we will see you soon, john and jalz, thank you. investors are seeing signs of life in the jobs front, but meanwhile, where is the demand coming from? and coming up, the head of devry comes up with expectations, and how are companies preparing for the expectation of going back to school?
welcome back. now, looking at the other stories following on the "closing bell" ticker. apple is raising its earnings expectation because the apple ipad will increase. they sold more than 3,000 of them on the opening day. that is more than the iphone. they are rising with expectation of ipad at $238.55.
and the washington post getting a baron's bounce after it is said to be the most undervalued company in the united states. the shares could be as much as $900 because of the value of the assets and the rapidly growing kaplan education division. washington post up today 8.5%. according to s.e.c. filing, a.c. capital founder steven cohen has taken a 8.2% stake in intermune coming on a decision of the fda to treat a deadly lung disease. the stock is up today 1.33%. there is a rebound on the market on the horizon? with companies sitting on a record stockpile, maybe equity investors will get another big boost. that story is coming up. here is a look at some of today's winners and losers. 
welcome back. let's take a look at the
business headlines of the day. oil prices surging to the highest level since october 8, 2008, following friday's better than average jobs report. and crude oil rising $1.75 today to finish today at $86.62 as expectations of global demand rise. and a planned spin off of its nuclear unit to entergy cancels its plans. and with a decline in vacancies hitting a 16-year high, reis is off of the high 17.2%. and stock buybacks are the story of the day where purchases
totaled $7 million for 2009. and this year, there is a boost for markets historically, but will it be the case this time around? we have huntington asset management, peter with us, and also, a cnn contributor peter solis. peter, some ib investors view buybacks as a positive, u you see it as the opposite. what are the negatives here? >> well, if you look at the company as a growing concern, and think about no product line to invest the capital in and no advanced machinery to buy to enhance productivity and no weak competitor to add, buying back into the stock is the best idea, to me, it tells me that there is no long-term future in the business at this time, and maybe i should look for somebody who wants to grow the top line and
not slihrink the balance sheet. >> and do you feel the same about dividends? >> no, it is a different story. >> vince, how do you feel about it? tell me your ideas on buybacks? we continue to feel like we are going to see a lot of buybacks in 2010, because of the cash on balance sheets. >> yeah, i would not be as negative as peter. two caveats on it. one, the buyback will shrink the number of shares outstanding, and some buybacks equalizing the stocks issued under stock option where you get nowhere. it is a question of arithmetic, if i can buy back in the shares and return on the capital, than i can in investing something new, then i buy into the shares, and to me, it is a question of arithmetic, but i like the dividends on a more permanent basis, because dividend is more of a pertinent commitment with the stakeholders and stocks that consistently increase dividends
and nots with a high yield, but consistently increase the dividends are well rewarded in the marketplace. >> well, you never know if the company is going follow-through with the buyback, but with the dividend, when you have an announced buyback, the stock moves and then it is over, and they don't necessarily have to follow-through, right? >> well, they don't have to follow thf throu follow-through, and the stock fell through and we changed our mind. so they shrink the total capitalization or simply replace the stock issued to the management in the form of options? because there is a lot of things underneath the stock surface that are not good for you. >> and pete, you would investleswhere rather than the united states, is that right? >> yes, when you see a broad trend like this and that goes back to the earlier segment is on executive compensation. we have a risk not being reward and fleet of custodians as
opposed to entrepreneurs. larry makes the most, because he takes risk, and i have bought his stock and have for year, and if you want to reward people for shrinking the balance sheet or boosting the stock price over the short term, that not the environment you want to be in. you want place where is the capital can grow and cow can get adequately rewarded, but unfocht inially the climate does not exist here. >> good point. what do you do, pete n terms of investing around or not around this trend, but where around the world are you looking right now for opportunities? >> well, i think that, you know, some of the emerging markets, it has been overdone to an extent and when you look at the pullback in brazil, that market is rewarding capital well, and elsewhere in the pacific rim, and still lear ri of ty in the n in china and the rim and the subcontinent, and those companies are growing fast and respect for the rule of law and an environment where you have an emerging middle-class and you
want the play into that and that is revenue growth in the real sense of it. >> do you agree, vince? >> well, take a look at 4 h compa -- 40 companies in the s&p 400. they are the big agest and the best and tend to have an international market exposure and you pick that up by buying those. i understand the liquidity and the accounting and stay with something like that. i don't have the expertise to go far afield to india and china. i would rather go ibm who does business in those companies and redwarding me with a increasing dividend. much safer way to pay it. >> who is poised to pay back stock money? >> well, technology especially, and you will see a little buyback in health care, because they now have the playing field set, and they know what is happening. >> agree with that, peter? >> absolutely.
i concur with vince, if you buy u.s. company, those are the characteristics i want in those companies. >> great conversation, gentlemen. appreciate your time tonight. vince farrell, and pete sorrentino. we are seeing life on the jobs front, and focusing on one company that may benefit from a job recovery and improving economy. the ceo of higher education firm devry will be on to talk about that. and now, the report from asia. >> exit strategies in focus with a host of central bank meetings on the cards today. economists are split on the outlook for a further hike from the reserve bank of australia after a run of soft economic data in march. in the meantime, the bank of japan is kicking off a two-day meeting with economists not expecting any further moves after bank expanded cheap funds
scheme. and u.s. relations with india are in the spotlight as u.s. secretary treasurer tim geithner arrives in new delhi for key economic talks. catch all of the news on cnbc world. we are going global with your money.
welcome back. friday's jobs report are the biggest gaining payrolls in three years. while most added jobs across the board, my next guest says that the future employment growth is clearly in education and health care. we have the ceo of devry, inc., and glad to have you on the show. can you tell us what you are generally seeing in terms of the jobs picture today and into 2010 and 2011? >> well, we are bumping along the bottom here. it is a tough market, and we saw a good report on friday. we are helping our students, our graduates to find employment in their chosen fields of study, and it is tough out there no question about it. >> but we saw the best gain in three years with the 162,000 new job creation. you think that the jobs are in health care and education.
tell us specifically where the jobs are right now? >> health care is definitely number one, maria. everything from physicians to nurses to medical tech anythings. we are now projecting a shortage of about 125,000 physicians in the next 10-15 years, and a shortage of 1 million nurses by the end of the decade. and so, it is just a tremendous need for health care professionals. >> okay. in what capacity specifically are we looking at job potential in health care? i guess it was the labor secretary a couple of years ago elaine chow said we need 1 million new nurses and health care aides, and is that the type of job you are talking about and requiring a new skill set for people? >> yes, and that is in the jobs report friday, one of the few areas that is growing, 162,000 of those were nurses, home health care workers and those professions. and given the 15 million people we have unemployed today, that is 9.7% unemployment and 15
million people, that is a set of people who need new skills, and that's something that is going the take the efforts of the public sector and the private sector schools like devry to create more educational capacity. >> that is what i really want to get tlur, becauhrough, because something i talked about in my book of how the adapt in the new environment, and maybe new skill set or classes that you need to take, and how do folks know where the growth is coming from, and what specifically they may need to thrive in that new environment? it is amazing. students vote with the feet, and they figure this out. a good example would be health information technology. you know, the intersection of health care and technology. one of our fastest growing degree programs at devry university is growing which is is a two-year degree in health information and technology. the students figure this stuff out, and they come in and talk
to our advisers and we provide information about where we are seeing the jobs. we have a huge career services office at devry university for example with over 150 career services, professionals to help advise the students on where the jobs are, and they are out talking to employers everyday and helping students make that transition. >> so, through many of the colleges, and you offer associate and bachelors degrees? >> and doctoral levels as well. >> you are seeing the biggest job growth in health care and education, and where is the interest coming from in terms of getting those degrees? people looking for second careers -- >> yes. yes, it is a lot of career-changers and working adults or more of an adult-student. and traditional college-aged students coming straight out of high school. we do go out into the high schools and recruit students and give them advice on the options, and we have many traditional aged students, but the fastest
growing sector is people looking to change careers. for many of the students whether to devry or chamberlain college of nursing, and maybe they have an rn, but they want a bsn to move to the next level in their career, they are looking for the weekend courses, evening course and online and working adult, and they need that responsiveness. that is the kind of things that our schools tend to be good at. >> good point. now you have 32 million more people getting insurance with the health care reform, and this is a big driver of health care jobs, right? >> that is exactly right, maria. you mentioned 1 million nurses short, and 125,000 doctors short. and so our schools, we have a medical school, and we have a chamberlain college of nursing and now a new one called carrington college, and they provide the associate level programs and certificate programs in medical technicians. so think of the respiratory therapist or the surgical technician or the medical technician that is working in
concert with the nurse and the doctor. that is is a huge growth area. >> who is not hiring? do you see any changes within financial services for example that -- >> yeah. >> that is creating sort of a lack of jobs or a bit of a vacuum? >> yeah, i was going to say unfortunately for the audience of this show, that is one of the areas that shrank in the jobs report that we saw financial services down again which is disappointing, but even in the areas that we are seeing the bottom there. we have a large accounting program at devry university and our keller graduate school, and then we go on to help students pass the cpa exam, and the becker cpa review, and that is soft for us for the past year or so, and we are starting to see some signs that maybe they are hitting the bottom and hoping for growth again in accounting and financial services, so some hopeful, but early signs there. >> daniel, great to have you on the program. thank you very much. >> yes. >> daniel hamberger, of devry
educational opportunities.
welcome back. dr. dre has some new beats and we are not talking about the latest album set to be released in the next few weeks. beats brand headphones are the rapper's greatest creation. they are popular with professional athletes. they have a steep price tag selling for $350 apiece. earlier today, i spoke with dr. dre and the beats co-founder of intrascope records about the state of the industry today. i began with why these beats headphones are so special. >> the sound, the style, everything that we put into it, i mean, we worked really hard on getting these things to sound the way they do right now. in my opinion, they are the best sounding headphones out there right now. >> let me ask average person is going to be willing to shell out $350 for a pair of headphones in today's economy?
>> well, absolutely. i mean so, far so good. i think once people get a chance to really hear the difference in these and the other headphones that are out there they'll definitely go out and spend the money for it because it's absolutely worth it. >> so what kind of a reception are you seeing so far? >> everybody that hears it loves them. everybody that hears these switches from the headphones that they're presently listening to. >> headphones had never been fashionable before. they'd either been fashionable and sound terrible or sound decent and look terrible. these headphones have both. we took about two years to design and get the sound right on them. and we think this is the beginning, not the -- not anywhere near finished. >> so tell me about the music industry, jimmy. can you talk to us about how things have changed and how your efforts, whether it's on audio or the other things you're working on, is positioning interscope to survive and really thrive in obviously a real changed fundamental environment for music. >> it's a different business right now. it's just no longer, you know, having one hit song and selling
12 attached to it. you have to make really complete albums, complete thoughts, and you have to have an image, an idea. i mean, lady gaga is a great example of what we want to see today. so to find the right artist, you can build an industry with, build a business with, is also something record labels should do. >> and of course you were promoting at fenway park yesterday. dr. dre, what about it for you? as far as the music industry and how it's changed from your standpoint. and give us a sense of how that marketing went yesterday at fenway. >> it was incredible yesterday. i mean, i couldn't believe it. it was actually a little bit intimidating when i got out there. i got a chance to do a little bit of batting rapractice. but as far as the music goes, it's pretty much the same for me because i'm just putting my all into what i'm doing. i'm trying to make sure that it's something that i'm going to be proud of. and i'm -- you know, of course not going to embarrass myself or anybody that i'm working with. >> jimmy, can you give us a sense of the expense side of the business from your standpoint in the music business? you know, we've got heads of labels on a lot, and they're telling us increasingly that the
digital revolution has changed and you really have to come up with new economic platforms and ways to make money. >> the tide is turning with all these big companies and the music industry. our license is very, very valuable. and how it comes to people on demand and when it comes to them is going to be very powerful. and we are learning how to play in that game. and i think doug morris, the chairman of universal, has become very, very good at this. i think you're going to see some very big changes in the next two years. >> and people will pay up for that if they get it sooner than the others. >> i think whichever company comes to the party first is going to have a big advantage over their competitors. >> my thanks to jimmy iovine and dr. dre. you can check out the rest of my interview on my blog, let's take you over to the nasdaq marketsite, meanwhile. simon hobbs is there with a preview of what's coming up on "fast money" at the top of the hour. hey, simon. >> maria, on "fast money" tonight we're going to talk to the natural gas ceo who's spending $1.6 billion to get
into oil and ask what that means for his own space. how you could potentially hit the jackpot with an options strategy on gaming stocks. we'll look at whether apple can harness the greatest productive power within america, its small or medium sized businesses. and we'll be looking at whether it's still safe to bet on brazil. that and an awful lot more coming up here with the traders from the nasdaq marketsite at 5:00. back to you. >> the masters kicks off thursday. all eyes are on the golf world, squarely focused on tiger woods today. he took questions from the media. find out what he's saying when we come right back. stay with us. you're watching krrngs fircnbc, business worldwide. ♪
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who was very appreciative. this is how cargill works with customers.
welcome back to "the closing bell." i'm phil lebeau with breaking news. a statement from toyota regarding the record fine that it has been slapped with from the department of transportation for failing to act quicker in notifying people about a defective sticky gas pedal. remember the federal government saying it will fine toyota $16.4 million. toyota is not responding to the letter and the fine specifically. it has not reviewed the letter from ntsa but says we have already taken a number of important steps to improve our
communication with regulators and customers on safety-related matters as part of our strengthened overall commitment to quality assurance. that's toyota's response to the department of transportation slapping the automaker with a record fine of almost $16.4 million. maria, that's the latest on the toyota sticky pedal recall fine. back to you. >> all right. thanks very much. phil lebeau. meanwhile, tiger woods holding his first press conference since his infidelity scandal broke as he gets ready to compete in the masters. cnbc's darren rovell is in augusta right now with the details. darren? >> yeah, thanks, maria. unlike previous times when tiger woods has gone before the media as this scandal evolved, this time he faced a barrage of questions, and there were no restrictions. and he did a pretty good job. he admitted that on the night of the accident he had a busted-up lip and a sore neck. he admitted to using vicodin for pain for previously undisclosed achilles injuries, and ambien around the time his father was dying, and he categorically denied using performance-enhancing drugs. he actually used words of contrition similar to the february news conference, but
this time he looked reporters in the eyes and he constructed his own sentences. he also had a message for companies like accenture, at&t, and gatorade that dumped him. and nike, ea, and the corporations who stood by him. >> do i understand why they dropped me? of course. you know, i made a lot of mistakes in my life. and i totally understand why they would do that. going forward, hopefully i can prove to the other companies going forward that i am a worthy investment. >> and tomorrow we'll find out who the two lucky souls will be who will pair up with tiger woods. of course that's going to be an incredible gallery following them around on thursday and friday, see if tiger woods makes the cut. and then the drama really ensues. for more check out my blog at back to you. >> what are the bets? given his practice today, is
there a sense he can win it? >> well, i think it's hard based on a practice, maria. but the oddsmakers still have tiger woods as the favorite to win it, which after a 4 1/2-month hiatus and everything he's gone through is absolutely amazing. >> it sure is. thanks so much, darren. we'll see you later. darren rovell live in augusta, georgia tonight. before we go take a look at the day on wall street. it was a pretty good day once again. momentum continues for equities. the dow industrials up another 46 points at 10,973. even if we did have volume under a billion shares on the light side. nasdaq picked up 27 points, better than 1%, with technology one of the leadership groups on the up side. 2429 last trade on the nasdaq. and the s&p 500 tonight up .75%. up nine points at 1187. that'll do it for "closing bell" for tonight. thanks so much for being with us. "fast money's" up next. thanks for watching. have a fantastic evening, everybody. see you torl. . oh, yeah.
live from the nasdaq marketsite, this is "fast money"! i'm simon hobbs in this week for melissa lee. joining me at the desk, tim, joe, karen, and john, and patty edwards manning the prop desk. here's my question to you tonight. do you believe? stocks keep going higher. cash has become a four-letter word for fund managers. karen, you run a successful operation. for people sitting at home now, they've got their kids' college money, their own money for retirement -- >> that's a lot of pressure. >> it really is. >> should they put it into the market? >> i actually think they should. i think we're seeing a lot of positive data. i don't think any one single data point is what you should base your decision on. but there is a lot of pieces of data that are coming in positively that builds a mosaic that i think bodes well for the u.s. economy and for u.s. stocks. you know, we had the ism number today. that was good. we had pending home sales numbers. we've had some good same-store sales numbers. decent employment numbers. that's a lot of pieces of data coming together and you have
companies that are in great shape -- >> let me bring in another voice. gary kaminsky knows a thing about minute money. he controlled $13 billion of it as managing director at neuberger. he's on the fast line. should people commit funds? how long will the mutual funds keep buying? >> hey, simon-g to chat. we've been on there for several weeks now, and i thought that once we got to the end of the quarter it was important to see how april started. i thought that april would start the same way, and the fact of the matter is if you're a paid person who's paid to manage money the risk of not being in stocks outweighs everything and that seems to continue. the first quarter represented a very bad relative performance quarter for most money managers. so the answer very simply is yes, this will continue. >> so gary, a lot of people last year in 2009 hid in the fixed income market. that money clearly is coming out. do you see it going into equities? >> joe, that's an interesting point. i think a lot of the money that has stayed in bonds stayed in cash by the retail investors is going to continue to stay